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<p>This article aims to explore the complex relationship between tax deductions and the spatial correlation between health demand and private supply. By using an original dataset at an unprecedented municipal level and employing a spatial counterfactual empirical strategy to control for the confounding effect of income and other socioeconomic characteristics, we investigate the core hypothesis that the presence of a private health provider in a municipality increases health-related overspending. While private providers are more likely to locate in wealthier areas, our approach allows us to isolate the effect of provider presence beyond general area affluence and to assess its influence on citizens’ spending behavior. This behavior was also analyzed with a geographically weighted regression, which allowed us to account for strong spatial non-stationarity by including local potential hidden confounders.</p>

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Does private supply drive personal health choices? A spatial approach of health tax detractions at the municipal level

  • 期刊论文

  • 发表日期：

    2026年3月7日

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  • Mauro Marè,
  • Francesco Porcelli,
  • Francesco Vidoli

摘要

This article aims to explore the complex relationship between tax deductions and the spatial correlation between health demand and private supply. By using an original dataset at an unprecedented municipal level and employing a spatial counterfactual empirical strategy to control for the confounding effect of income and other socioeconomic characteristics, we investigate the core hypothesis that the presence of a private health provider in a municipality increases health-related overspending. While private providers are more likely to locate in wealthier areas, our approach allows us to isolate the effect of provider presence beyond general area affluence and to assess its influence on citizens’ spending behavior. This behavior was also analyzed with a geographically weighted regression, which allowed us to account for strong spatial non-stationarity by including local potential hidden confounders.